Top 7 Savings Bank Account Options for Your Child

The moment adulthood strikes and we start earning to balance our needs and wants, the first thing we do is to open a savings bank account for ourselves to keep all our hard earned money safe. While this applies to those who are earning, the savings for kids is usually done by parents.

Parents who save for their kids often want to open savings account for their children to keep a certain amount of money away from their regular expenses. Financial experts say it is never late to start saving and opening bank accounts for children help them learn about the importance of saving the hard-earned money. Parents even help their kid learn and understand about money management in the early years, which helps the child to manage money wisely for their kid’s future. The best way to help them in learning by introducing them to kids savings account.

Kids Savings Account will help the child to understand with time how one save money and how it grows with less risk involved. Having a saving bank account for your child provides you a benefit of saving your money securely, while earning interest on that too.

There are various banks that offer savings account for kids with great benefits. Let us check some of the best kids savings account offered by banks.

IDBI Bank- Power Kids Account

IDBI realised that parents nowadays start saving money for their children right from the day they are born. To cater this specific need, IDBI Bank launched IDBI Power Kids Account.

Features & Benefits

The minimum balance requirement for the Power Kids account, which has to be maintained, is Rs 500. There is no charge for not keeping the Average Quarterly Balance. IDBI Bank also provides cheque book, pass book, Exclusive designed Kids ATM Card for free with this account and allows withdrawal limit up to Rs 2000 per month only. The kid can use the ATM card to make free first five transactions at other Bank ATMs at non metro locations. If the minor is above 10 years of age, he/she can operate the account on their own.

HSBC Premier Junior Account

If you as parents want to open a HSBC Premier Junior Account for your child, you first have to be an HSBC Premier Customer. You can open an HSBC Premier Junior Account or go for a Supplementary Credit Card for your child below the age of 18. You can request for an HSBC Premier Platinum Debit Card for your child if over the age of 16.

Features & Benefits

With HSBC Premier Junior Account, you can get a monthly statement of the Premier Savings Account to get a holistic view of the expenses incurred by your child. You can also opt in for text alerts to your mobile number to stay informed about the transactions made on your child’s premier savings account. With HSBC Premier Account, your child will also get international benefits of the account. Not only this, there are several other services available, which will benefit your child such as Emergency Encashment services, HSBC Premier Overseas Education Benefits, etc.

Kotak Bank – My Junior Account

The Kotak Bank Junior Bank Account provides 6% per annum interest and is primarily designed to make your child understand the benefits of saving. Kotak offers a bundled offering, which helps your child learn to save. The bundled offering includes the Junior Savings Account Nova Variant (NMC waived off) and Guardian Savings Account. Also, Kotak Junior Account helps in an investment in a recurring deposit or Systematic Investment Plan with as low as Rs 2000 per month (Rs 1000 or above in Semi Urban and Rural Branches) with minimum tenure of 36 months. Recurring Deposit allows you to make investment in a long term deposit every month and help your child learn to save.

Besides the bundled offering, Kotak also provides standalone Junior Account, which is available in six variants (Platina, Ace, Pro, Classic, Edge, Nova), without the separate guardian account and investment options (Recurring Deposit or SIP).

Features & Benefits

Kotak Junior Account offers Personalised Junior Debit Card and exciting rewards programme, which provides several benefits like book vouchers, movie tickets and discount vouchers. Debit cards will only be issued to children above 10 years of age only on the request of the guardian. This debit card will come with a withdrawal limit of Rs 5000. Kotak Bank provides attractive interest rates up to 6% on Junior and Guardian’s Saving Account Balance. The Junior Account also comes with exclusive discounts and privileges for kids like Junior Foodie, Junior Day Out, Junior Shopper, Junior Learner and Junior Angel.

Indus Young Saver Savings Account

IndusInd Bank understands your needs as parent and comes with Indus Young Saver Savings Account to help your child manage and save their money under your guidance. The eligibility criteria for this account includes: A minor can open Indus Young Saver Savings Account on the child’s name if he is above 12 years of age. If not, the account should be opened as an “Under Guardian” Account, where the guardian will be in operation of the account. The Young Saver Savings Account is required to maintain an average monthly balance of Rs 5000. Minor is also entitled to monthly balance waiver if his account is linked with a parent privilege account or Recurring Deposit of Rs 2500 per month.

Features & Benefits

IndusInd Young Saver Savings Account offers a unique Gold Debit Card, which will be issued in the name of child if he is above the age of 12. You can even add a personal touch to your child’s debit card by customizing it with a fun image. You will also be provided with a cheque book with your child’s name on it, to guide your child on handling and saving money wisely.

ICICI Bank – Young Stars & Smart Star Account
ICICI Bank – Young Stars Account

ICICI Bank Young Stars Account can be opened for minors to operate the account according to your child’s need, right from a young age.

Features & Benefits

ICICI Young Stars Account offers free Young Stars Debit Card, which will help your child to make direct purchases through a POS (Point of Sale) machine and also withdraw cash using ATMs. You can choose Young Stars Account with withdrawal limits Rs 2500 / Rs 5000 for shopping and cash withdrawal each day. It also comes with facilities like money multiplier facility and standing instructions facility, which helps to debit money from parents account to the youngsters account.

Smart Star Account

Any minor above the age of 10 can open and operate ICICI Smart Star Account all by themselves. This will help them to make a habit of savings and a responsibility to spend wisely.

Smart Star Account comes in two variants:

Smart Star Savings Account with Guardian Consent – has a debit transaction limit of Rs. 2 Lakhs in a financial year.
Smart Star Savings Account without Guardian Consent – has a debit transaction limit of Rs. 50,000 in a financial year.

Features & Benefits

ICICI Smart Star Account offers free Personalised Debit Card with the spending and withdrawal limit of Rs 5000. It also provides a personalised cheque book, which can be issued by the child. ICICI Smart Star Account also comes with features like free internet banking access, free mobile banking access, free email statement and prepaid mobile recharge facility.

HDFC Kids advantage Account

HDFC offers Kids advantage account for the child. HDFC Kids advantage account offers additional benefits like education insurance cover etc. Kids Advantage Account can be opened for your child as long as your child is a minor (up to 18 years of age) and you have an HDFC Savings Account. A minimum average monthly balance requirement of Rs 5000 has to be maintained. For AMB slab of >=2500 – <5000 and 0 to <2500, service charge of Rs 150 and Rs 300 will be levied respectively.

Features & Benefits

HDFC Kids Advantage Account offers free education insurance cover of Rs 1 lakh, free cash withdrawals on any other Bank’s ATM. HDFC will also issue an International Debit Card for children between 7-18 years of age. The Debit Card will be issued in your child’s name with your permission and will have a daily withdrawal limit of Rs 2500 and spending limit of Rs 10000 at merchant locations. It also helps in easy banking with facilities like free NetBanking, PhoneBanking and MobileBanking that allow you to check your account balance, pay utility bills, or even stop cheque payments via SMS.

SBI- PehlaKadam PehliUdaan

State Bank of India has two accounts specially designed for kids called PehlaKadam and PehliUdaan.

PehlaKadam

For the SBI PehlaKadam saving account, the eligibility criteria are as follows:

SBI PehlaKadam Account can be opened for your child as long as your child is a minor (up to 18 years of age). PehlaKadam savings account is a joint account, where your child will be the primary account holder, and you as Parent/Guardian will be the secondary.

Features & Benefits

The Monthly Average Balance Requirement for SBI PehlaKadam Account depends on the location of the branch.

Features such as personalised cheque book and Mobile Banking are available for PehlaKadam Savings Account. It also comes with Child’s photo embossed ATM-cum-Debit Card with withdrawal/POS limit of Rs. 5,000/-. Card will be issued in the name of the minor and Guardian.

PehliUdaan

In this SBI PehliUdaan saving account, the eligibility criteria are as follows:

The age of the kid should be above 10 and below 18 years. PehliUdaan savings account is a singly operating account, unlike PehlaKadam. PehlaKadam Account is opened in the sole name of the minor.

Features & Benefits

The Monthly Average Balance Requirement for SBI PehliUdaan Account depends on the location of the branch.

Features such as personalised cheque book and Mobile Banking are available for PehliUdaan Savings Account. It also comes with Child’s photo embossed ATM-cum-Debit Card with withdrawal/POS limit of Rs. 5,000/-. Card will be issued in the name of the minor.

Conclusion

So, introduce your child to savings  by opening a Savings Account for him/her. Opening a savings account is just the foundation of savings and investments for your child. Your child will be motivated and encouraged to save and will also understand the value of money and banking services.